IMF approves $4.2B extended fund facility for Ecuador

By

Renzo Pipoli

Ecuadorean President Lenin Moreno will be able to implement policies to clean up Ecuadorean finances with the help of a $4.2 billion fund granted Thursday by the IMF. File Photo by Jemal Countess/UPI | License Photo

Feb. 21 (UPI) -- The International Monetary Fund said Thursday that its officials have agreed with Ecuador "on a set of policies" over the next three years to pave the way for a $4.2 billion fund facility.

"This arrangement is part of a broader effort of the international community that includes financial support of almost $6 billion over the next three years from the Development Bank of Latin America, the Inter-American Development Bank, the Latin American Reserve Fund, and the World Bank," the IMF said.

According to The Financial Times, the $4.2 billion is part of a $10 billion total from several lenders to support the Andean country's foreign debt-loaded finances, mainly with China.

The Financial Times reported the accord signaled a final rupture by Ecuadorean President Lenin Moreno with the policies of his leftist predecessor Rafael Correa. Moreno has been president since May 2017.

The policies that the IMF wanted to secure for the coming years include the reduction of public spending, tax revenue increases, central bank independence, the rebuilding of international reserves and the protection of the country's most vulnerable citizens, Ecuadorean newspaper El Universo reported.